PixelFish, an LA-based online video advertising solutions firm, has bought the assets of shuttered online video tools and services provider Eyespot, for an undisclosed sum. Eyespot closed down earlier this Fall, after failing to gain traction in the industry, despite having raised $3.7 million from Gabriel Venture Partners, Express Ventures and executives from MP3.com and DivX. Now with the assets acquisition, PixelFish will integrate EyeSpot's online video production tools and video transcoding tech into its video ad creation and optimization tech.

Eyespot first started as an online video editing tools site, but changed it strategy earlier this year to be a white-label video vendor, a heavily competitive area with relatively sparse money in it for now. NTV explains it well here. PixeFish, meanwhile, was founded in 2006 and provides video ads for Google (NSDQ: GOOG), Yellowbook and other search, directory and ad network providers.

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